The Cannabis Cultivation Market, estimated at USD 59.63 Bn in 2025, is expected to exhibit a CAGR of 17.9% and reach USD 188.83 Bn by 2032.
The market growth is driven by increasing demand for innovative and effective drugs across diverse therapeutic areas. Advances in drug discovery, biopharmaceuticals, and digital technologies are improving treatment outcomes and operational efficiency. Supportive regulations, rising R&D investments, and a strong focus on patient-centric care are creating new opportunities for pharmaceutical companies.
Key market players are focusing on adopting growth strategies such as research and development (R&D) acitivities which will drive the global cannabis cultivation market. For instance, in May 2021, the Drug Enforcement Administration (DEA) took a significant step toward expanding medical and scientific research options. The DEA is nearly finished reviewing certain marijuana grower applications, allowing it to soon register additional businesses which are permitted to generate marijuana for research reasons. The National Center for the Development of Natural Products at the University of Mississippi is the sole authorized provider of marijuana for research purposes in the U.S., with all production going to the National Institute on Drug Abuse. The DEA issued new regulations regarding to applications by companies wanting to get registered with the DEA to cultivate marijuana as bulk manufacturers for research purposes on December 18, 2020. Under these and other applicable regulations, applicants must demonstrate that they have met various requirements, such as having appropriate state authority, thereby documenting that their customers are licensed to conduct research, and employing adequate safeguards to prevent diversion.
Global Cannabis Cultivation Market– Impact of Coronavirus (COVID-19) Pandemic
The World Health Organization (WHO) has termed the Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2) illness, which first appeared in Wuhan (province of Hubei, China), in the late months of 2019, "coronavirus disease 2019" or COVID-19. The quick spread and catastrophic impacts of this virus gravely affected the economies, social conventions, and healthcare systems of every nation on the earth.
COVID-19 influenced the economy in three ways: directly by affecting supply and demand, indirectly by disrupting distribution networks, and economically by affecting businesses and financial markets. Various nations, including Brazil, China, India, and others, encountered problems with transportation of the commodities, from one point to another as a result of the shutdown.
The COVID-19 pandemic has had a significant impact on the global cannabis cultivation market. According to article published by BDSA, a cannabis sales data platform in 2020, legal cannabis sales in the U.S. hit a record US$17.5 billion in 2020, a 46 percent increase as compared to the previous year. The pandemic led to an increase in online ordering, with many cannabis sellers offering delivery and curbside pickup. According to a report survey, the pandemic has led to a boom in domestic cannabis cultivation around the world, with 16% of participants, became involved in cannabis growing since the pandemic. However, the pandemic has also led to supply chain disruptions and labor shortages, which have affected the industry.
Global Cannabis Cultivation market: Key Developments
In July 2022, Governor of Illinois. U.S., Mr. JB Pritzker announced that the total tax on adult-use cannabis in the state increased by 50%, from US$297.7 million in fiscal year 2021 to US$445.3 million in fiscal year 2022.